(Sept 8): Elliott Investment Management sued the London Metal Exchange, claiming its handling of the nickel crisis breached UK competition rules, according to the defendant’s parent company.

The lawsuit, filed with the country’s Competition Appeal Tribunal, creates fresh legal jeopardy for the LME after it successfully defended claims brought by Elliott and other investors in relation to the runaway short-squeeze in 2022.

In the latest claim, two Elliott units allege that the LME and its parent, Hong Kong Exchanges & Clearing, “infringed the prohibition on abuse of dominance” under UK competition law, HKEX said in a statement on Tuesday. The exchange operator said it will contest the claim "vigorously" and views it as without merit.

Elliott alleged that the infringement stems from factors including the LME’s failure to prevent disorderly trading during periods of severe market stress and identify and manage conflicts of interest, according to HKEX’s statement.

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